Warren Buffett’s firm buying US insurance company for $11.6B

By Ovunc Kutlu

ANKARA (AA) - American business magnate Warren Buffett's conglomerate Berkshire Hathaway announced Monday it has agreed to buy US insurance company Alleghany for $11.6 billion.

In a statement, Berkshire Hathaway said it will acquire all outstanding Alleghany shares for $848.02 per share in cash.

Alleghany's stock price stood at $676.75 per share on the New York Stock Exchange as of Friday's closing.

The agreement is unanimously approved by both companies' boards of directors, according to the statement.

The transaction is expected to close in the fourth quarter of 2022.

After the closing, Alleghany will continue to operate as an independent subsidiary of Berkshire Hathaway, the statement said.

Alleghany and its subsidiaries operate in various insurance businesses, such as wholesale, property and reinsurance.

US-based multinational conglomerate holding company Berkshire Hathaway had more than $146 billion in cash at the end of 2021.